CPFL Energia S A : 1Q20 Conference Call Presentation

1Q20 Results

Disclaimer

This presentation may contain statements that represent expectations about future events or results according to Brazilian and international securities regulators. These statements are based on certain assumptions and analyses made by the Company pursuant to its experience and the economic environment, market conditions and expected future events, many of which are beyond the Company's control. Important factors that could lead to significant differences between actual results and expectations about future events or results include the Company's business strategy, Brazilian and international economic conditions, technology, financial strategy, developments in the utilities industry, hydrological conditions, financial market conditions, uncertainty regarding the results of future operations, plans, objectives, expectations and intentions, among others. Considering these factors, the Company's actual results may differ materially from those indicated or implied in forward-looking statements about future events or results.

The information and opinions contained herein should not be construed as a recommendation to potential investors and no investment decision should be based on the truthfulness, timeliness or completeness of such information or opinions. None of the advisors to the company or parties related to them or their representatives shall be liable for any losses that may result from the use or contents of this presentation.

This material includes forward-looking statements subject to risks and uncertainties, which are based on current expectations and projections about future events and trends that may affect the Company's business.

These statements may include projections of economic growth, demand, energy supply, as well as information about its competitive position, the regulatory environment, potential growth opportunities and other matters. Many factors could adversely affect the estimates and assumptions on which these statements are based.

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Reduction of0.2% in load in the concession area

EBITDA ofR$ 1,696 million, growth of10.8% Net Income ofR$ 904 million, growth of58.5%

Net Debt of R$ 15.1 billionand leverage of 2.21x Net

Debt/EBITDA1

Investments of R$ 516 million, growth of 15.9%

CPFL Paulista tariff adjustment inApr-20,with an

adjustment of +6.05% for the consumers (postponed to July 1st) and an increase of +6.92%in Parcel B

Note: (1) Financial covenants criteria.

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1Q20 Highlights

CPFL Renováveis' Delisting Tender Offer: registered by CVM on Apr 27th; auction will occur on Jun 10th, according to the Notice released on May 6th

Entry ofCPFL Energia's shares in theIbovespa of the B3, inMay-20

CPFL Energia won theEquities Deal of the Year 2020 - Americas, granted by The Banker (Financial Times) to its 2019Re-IPO(R$ 3.7 billion)

Aneel recognized CPFL Santa Cruzas the best distributor in the country for the Global Continuity Performance (DGC)in 2019

1Q20 Energy Sales

Load1in the concession area | GWh			Sales in the concession area | GWh		Breakdown in the concession area | 1Q20
		-0.2%2		Free Client		17,731	-1.6%2	Free Client			Others
				Captive			17,442	Captive			Residential
18,071		18,040							18%
											Commercial		31%
							5,324	5,541
		+4.3%							17%
5,725	5,969						+4.1%
12,346	-2.2%	12,071				12,407	-4.1%11,901					Industrial
							34%
	1Q19		11Q20T 0				1Q19			1Q20
	1T19					1T19			1 T 2 0
	Sales by consumption segment | GWh				Main impacts by segment | %
			-1.6%
		(160)											Resid	Ind	Com	Others	Total
		(81)	(63)	14					Billing calendar	-0.2	0.6	0.2	-	0.2
											Temperature		-3.1	-	-3.0	-0.4	-1.6
	-2.9%	-1.4%	-2.0%	+0.5%
17,731				Migrations		-	-1.2	-	-2.6	-0.9
							17,442
											DG		-0.7	-0.2	-1.3	-0.3	-0.6
											Macroeconomics/	1.1	-0.6	2.1	3.8	1.2
	1Q19	Resid.	Indust	Commerc.	Others	1Q20			Others

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1) Load net of losses; 2) If excluding the migration of large consumers, the load and the sales within the concession area in 1Q20 would have the following variations: +0.7% and -0.8%, respectively.

Delinquency and Energy Losses

Delinquency

Energy Losses

ADA | R$ MM

Losses | Last 12 months

-15.0%

68.164.361.1

0.91% 0.92% 0.87%

57.9

39.5

0.77%

0.49%

8.84%9.14%

8.30%8.19%

1Q19	2Q19	3Q19	4Q19	1Q20	Mar-19	Mar-20
					CPFL Energia	ANEEL Limits

Collection actions | Power cuts (thousands)

29.7%

				2.0%
465	536	589	591	603

1Q19

2Q19

3Q19

4Q19

1Q20

• There was an increase in losses when comparingMar-20 to Mar-19.
• • Differences in the billing calendar:-0.55 day¹
• Intensified actions against losses:
• • 200.7GWh of recovered energy (+18%)
  • 137,000 inspections (-1%)
  • Installation of telemetry with inspection
  • Replacement of meters on Group A customers

1) Excluding the differences in the billing calendar, Losses in the 1Q20 would have a variation of +0.03% (8.95% in 1Q19 vs 8.98% in 1Q20)

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1Q20 Generation

PLD - (SE/CW - R$/MWh)

-35.2%

290

188

1Q191Q20

Wind - Generation (MWh)

-16.0%

618

519

GSF/ Secondary Energy

-31.1%

149%

102%

1Q191Q20

SHPPs - Natural Resource -

Flow - m3/s

-8.9%

33.7830.76

1Q191Q20

Wind - Availability

+3.2%

93.0%95.9%

1Q191Q20

1Q191Q20

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1Q20 Results

			+10.8%
EBITDA performance by segment
+165 MM

R$ million	157	(42)	19
1.531

1Q19	Distribution	Comm, Services	Conventional
		& Others	Generation

Distribution: +16.0%

• Market / tariff (+R$ 135 MM)
• Concession financial asset (+R$ 74 MM)
• PIS/Cofins over ICMS in CPFL Santa Cruz - 1Q19

(-R$ 34 MM)

• PMSO / ADA(-R$9 MM)
• Others(-R$9 MM)

		EBITDA breakdown
31	1.696	by segment
		Renewable	Comm, Services &
		Generation	Others
		13%	1%

		Conventional	Distribution
Renewable	1Q20	Generation
67%
19%
Generation

Commerc., Services & Others: -75.4%

• Commercialization(-R$30 MM) - lower margin

Services (-R$7 MM)

• Others(-R$4 MM)

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1Q20 Results

			+10.8%
EBITDA performance by segment
+165 MM

R$ million	157	(42)	19
1.531

1Q19	Distribution	Comm, Services	Conventional
		& Others	Generation

Conventional Generation: +6.3%

• Inflation over energy contracts (+R$ 24 MM)
• Epasa overhaul - 1Q19 (+R$ 11 MM)
• Lower thermal generation(-R$15 MM)

		EBITDA breakdown
31	1.696	by segment
		Renewable	Comm, Services &
		Generation	Others
		13%	1%

		Conventional	Distribution
Renewable	1Q20	Generation
67%
19%
Generation

Renewable Generation: +16.0%

• SHPPs PPA seasonalization (+R$ 54 MM)

Biomass - seasonalization and higher generation (+R$ 15 MM)

Inflation over energy contracts (+R$ 12 MM)

• GSF/Secondary - SHPPs(-R$29 MM)
• Lower wind farms generation(-R$25 MM)

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1Q20 Results

Net Income performance	+58.5%
R$ million	+334 MM

341

		904
	165	(22)
571
	(150)

1Q19	EBITDA	Financial Results	Depreciation /	Income tax	1Q20
			Amortization

Financial Results

• Mark-to-marketeffect (+R$ 260 MM) - new debts (Law 4,131) in the amount

of R$ 2.9 billion and market conditions deterioration

• Expenses with net debt (+R$ 67 MM) - lower CDI and net indebtedness
• Others (+R$ 14 MM)

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Indebtedness

Leveragel Financial covenants criteria | R$ billion

			16.3	16.8	15.1
		14.5
	13.2
	3.21	3.19	3.05	2.52
				2.21
Adjusted Net
Debt2
/Adjusted
EBITDA1,2
	2016	2017	2018	2019	1Q20
Adjusted EBITDA1,2	4,117	4,531	5,342	6,677	6,846
R$ Million

Gross debt cost3IFRS | End of period
				Nominal
				Real
13.5%
6.8%	8.0%	7.5%	6.2%
4.9%		5.4%
	3.6%
		1.8%	2.1%
2016	2017	2018	2019	1Q20

Gross debt breakdown by indexer3

IFRS | 1Q20

15%67%

15%

3%

CDI Pre-fixed TJLP Inflation

Liquidity position

Funding in 1Q20

• Total amount:R$ 2.9 billion
• Average term:4 years
• All in cost:~CDI + 0.8%

Apr-20

• Contract signed with BNDES:
  R$ 3.5 billion
• Term:20 years
• Disbursement:~1/3 in 1H20

Debt Amortization Schedule | IFRS	Average Tenor: 3.15years
End of period	Short-Term (12M): 15%of total
Cash Coverage:	Short Term
1.78x Short-Term	Long Term
Amortization(12M)

1) LTM EBITDA; 2) Adjusted by the proportional consolidation; 3) Financial debt (-) hedge.

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CAPEX 1Q20

5%

7%

Distribution

• R$ 454 million
• Increase of 12.5% if compared to 1Q19
• Expansion, upgrade and maintenance of the electric system

Renewable Generation

• R$ 30 million
• Implementation of the projectsGameleiraand Cherobim

Total Investment of

R$ 516 million

in 1Q20

Increase of 15.9%

compared to 1Q19

Transmission

• R$ 8 million
• Beginning of the projects sold in 2018 auctions:
• • Maracanaú
  • Sul I and Sul II

Conventional

Generation

• R$ 1 million
• Operational infrastructure and maintenance improvements

88%

Services

• R$ 24 million
• Upgrade of management and operational support systems
• Acquisition and replacement of vehicles and equipment

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COVID-19

Important measures in CPFL Energia

On March 11th, 2020, the World Health Organization designated COVID-19 as a pandemic

Creation of a Crisis Committee in the beginning of Mar-20, with daily meetings and a

strong commitment of the Board of Executives, assuring a fast decision-making

Benchmarking with State Grid in China and adoption of best practices

Health and safety of our employees

Cancellation of events and travel (since the 1st week of March)

Anticipation of theflu vaccination campaign (+11 thousand employees vaccinated)

Monitoring/Daily survey of employees health

status

Distribution ofmasks, alcohol gel and daily temperature monitoring for allon-siteemployees

Changes inDaily Safety Dialogues, fromface-to-faceto remote sessions

Operation continuity

Daily Dashboard with critical KPIsfor the operations

80% of corporate employees working at home

Call center with 30% of attendants working at

home(remote customer service)

Migration of agencies from physical

to virtual customer service

Decentralization of operational basis and substations, creating new sites and changing

working schedule

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COVID-19

Important measures in CPFL Energia

Operation Centers

Execution of a contingency planto assure operation continuity

IT and information security reinforcement

Physical segregation of operation (Distribution and Generation), virtually

connected with each other:

• Campinas and Jundiaí (divided in 3 places)
• São Leopoldo (divided in 4 places)

Remote operationfor distribution commercial services

Mapping and recycling professionals for backup for

emergency situations

On March 11th, 2020, the World Health Organization designated COVID-19 as a pandemic

Financial health and measures to assure collection

Incentive todigital channels, throughMarketing

Campaigns

Improvements in ourwebsite, App, IVR, chatbot and implementation offree internet

Increase of37% in bills sent by e-mail

New payment option: credit card(implemented in 15 days)

Implementation of"Delivery Collection"

with 97 teams

CPFL Energia acted in a timely manner to preserve its employees and activities and now works on a plan for the post-crisis period

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